Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Feb. 01, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MONMOUTH REAL ESTATE INVESTMENT CORP | |
Entity Central Index Key | 67,625 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 77,692,113 | |
Trading Symbol | MNR | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Real Estate Investments: | ||
Land | $ 193,562,859 | $ 187,224,819 |
Buildings and Improvements | 1,290,476,339 | 1,244,691,715 |
Total Real Estate Investments | 1,484,039,198 | 1,431,916,534 |
Accumulated Depreciation | (179,492,182) | (171,060,478) |
Real Estate Investments | 1,304,547,016 | 1,260,856,056 |
Real Estate Held for Sale | 9,481,407 | 14,606,028 |
Cash and Cash Equivalents | 10,755,901 | 10,226,046 |
Securities Available for Sale at Fair Value | 130,431,475 | 123,764,770 |
Tenant and Other Receivables | 5,385,744 | 1,753,054 |
Deferred Rent Receivable | 8,391,569 | 8,049,275 |
Prepaid Expenses | 9,125,236 | 5,434,874 |
Intangible Assets, net of Accumulated Amortization of $13,554,423 and $13,404,318, respectively | 10,811,664 | 10,010,165 |
Capitalized Lease Costs, net of Accumulated Amortization of $3,114,088 and $3,393,187, respectively | 4,161,907 | 4,180,907 |
Financing Costs, net of Accumulated Amortization of $713,450 and $619,555, respectively | 781,813 | 875,709 |
Other Assets | 5,251,185 | 3,280,871 |
TOTAL ASSETS | 1,499,124,917 | 1,443,037,755 |
Liabilities: | ||
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | 612,651,435 | 591,364,371 |
Loans Payable | 110,000,000 | 120,091,417 |
Accounts Payable and Accrued Expenses | 3,587,862 | 4,450,753 |
Other Liabilities | 18,801,819 | 14,265,518 |
Total Liabilities | 745,041,116 | 730,172,059 |
COMMITMENTS AND CONTINGENCIES | ||
Shareholders’ Equity: | ||
Common Stock, $0.01 Par Value Per Share: 192,039,750 Shares Authorized as of December 31, 2017 and September 30, 2017; 77,209,110 and 75,630,521 Shares Issued and Outstanding as of December 31, 2017 and September 30, 2017, respectively | 772,091 | 756,305 |
Excess Stock, $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of December 31, 2017 and September 30, 2017; No Shares Issued or Outstanding as of December 31, 2017 and September 30, 2017 | 0 | 0 |
Additional Paid-In Capital | 485,469,807 | 459,552,701 |
Accumulated Other Comprehensive Income (Loss) | (4,142,572) | 6,570,565 |
Undistributed Income | 0 | 0 |
Total Shareholders’ Equity | 754,083,801 | 712,865,696 |
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | 1,499,124,917 | 1,443,037,755 |
Series C Preferred Stock [Member] | ||
Shareholders’ Equity: | ||
Preferred stock, value | $ 271,984,475 | $ 245,986,125 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Accumulated amortization of intangible assets | $ 13,554,423 | $ 13,404,318 |
Accumulated amortization of lease costs | 3,114,088 | 3,393,187 |
Accumulated amortization of financing costs | $ 713,450 | $ 619,555 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 192,039,750 | 192,039,750 |
Common Stock, shares issued | 77,209,110 | 75,630,521 |
Common Stock, shares outstanding | 77,209,110 | 75,630,521 |
Excess Stock, par value | $ 0.01 | $ 0.01 |
Excess Stock , shares authorized | 200,000,000 | 200,000,000 |
Excess Stock , shares issued | ||
Excess Stock , shares outstanding | ||
Series C Preferred Stock [Member] | ||
Cumulative redeemable preferred, stock dividend rate | 6.125% | 6.125% |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 12,400,000 | 12,400,000 |
Preferred stock, shares issued | 10,879,379 | 9,839,445 |
Preferred stock, shares outstanding | 10,879,379 | 9,839,445 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
INCOME: | ||
Rental Revenue | $ 27,692,482 | $ 23,280,856 |
Reimbursement Revenue | 5,049,340 | 3,900,755 |
Lease Termination Income | 210,261 | 0 |
TOTAL INCOME | 32,952,083 | 27,181,611 |
EXPENSES: | ||
Real Estate Taxes | 3,862,663 | 2,906,981 |
Operating Expenses | 1,436,241 | 1,294,468 |
General & Administrative Expenses | 1,947,032 | 1,442,463 |
Acquisition Costs | 0 | 178,526 |
Depreciation | 8,483,984 | 6,992,495 |
Amortization of Capitalized Lease Costs and Intangible Assets | 538,071 | 447,797 |
TOTAL EXPENSES | 16,267,991 | 13,262,730 |
OTHER INCOME (EXPENSE): | ||
Dividend and Interest Income | 2,864,217 | 1,292,151 |
Gain on Sale of Securities Transactions | 100,153 | 806,108 |
Interest Expense, including Amortization of Financing Costs | (7,405,947) | (6,163,219) |
TOTAL OTHER INCOME (EXPENSE) | (4,441,577) | (4,064,960) |
INCOME FROM CONTINUING OPERATIONS | 12,242,515 | 9,853,921 |
Gain on Sale of Real Estate Investments | 5,387,886 | 0 |
NET INCOME | 17,630,401 | 9,853,921 |
Less: Preferred Dividends | 4,316,946 | 3,697,760 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 13,313,455 | $ 6,156,161 |
BASIC INCOME – PER SHARE | ||
Net Income | $ 0.23 | $ 0.14 |
Less: Preferred Dividends | (0.06) | (0.05) |
Net Income Attributable to Common Shareholders - Basic | 0.17 | 0.09 |
DILUTED INCOME – PER SHARE | ||
Net Income | 0.23 | 0.14 |
Less: Preferred Dividends | (0.06) | (0.05) |
Net Income Attributable to Common Shareholders - Diluted | $ 0.17 | $ 0.09 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic | 76,375,400 | 69,686,153 |
Diluted | 76,586,782 | 69,829,793 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 17,630,401 | $ 9,853,921 |
Other Comprehensive Income: | ||
Unrealized Holding Gains (Losses) Arising During the Period | (10,612,984) | (1,941,041) |
Reclassification Adjustment for Net Gains Realized in Income | (100,153) | (806,108) |
TOTAL COMPREHENSIVE INCOME | 6,917,264 | 7,106,772 |
Less: Preferred Dividends | 4,316,946 | 3,697,760 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ 2,600,318 | $ 3,409,012 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 17,630,401 | $ 9,853,921 |
Noncash Items Included in Net Income: | ||
Depreciation & Amortization | 9,315,949 | 7,721,205 |
Deferred Straight Line Rent | (396,028) | (343,239) |
Stock Compensation Expense | 130,763 | 100,155 |
Gain on Sale of Securities Transactions | (100,153) | (806,108) |
(Gain) / Loss on Sale of Real Estate Investments | (5,387,886) | 95,336 |
Changes In: | ||
Tenant & Other Receivables | (3,607,013) | (255,461) |
Prepaid Expenses | (3,690,362) | (2,645,032) |
Other Assets & Capitalized Lease Costs | (89,641) | (428,282) |
Accounts Payable, Accrued Expenses & Other Liabilities | 3,284,409 | 860,211 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 17,090,439 | 14,152,706 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of Real Estate & Intangible Assets | (52,500,165) | (56,101,538) |
Capital Improvements | (1,782,422) | (696,941) |
Proceeds on Sales of Real Estate | 10,499,704 | 4,125,819 |
Return of Deposits on Real Estate | 450,000 | 1,000,000 |
Deposits Paid on Acquisitions of Real Estate | (1,350,000) | (820,000) |
Proceeds from Sale of Securities Available for Sale | 2,435,168 | 3,738,938 |
Purchase of Securities Available for Sale | (19,714,857) | (6,396,581) |
NET CASH USED IN INVESTING ACTIVITIES | (61,962,572) | (55,150,303) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net Repayments on Loans Payable | (10,091,417) | (4,790,684) |
Proceeds from Fixed Rate Mortgage Notes Payable | 33,800,000 | 38,000,000 |
Principal Payments on Fixed Rate Mortgage Notes Payable | (12,351,030) | (9,456,016) |
Financing Costs Paid on Debt | (361,905) | (636,963) |
Proceeds from the Exercise of Stock Options | 284,800 | 0 |
Redemption of 7.625% Series A Preferred Stock | 0 | (53,493,750) |
Proceeds from At-The-Market Preferred Equity Program, net of offering costs | 25,687,516 | 0 |
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments | 22,611,458 | 18,877,487 |
Preferred Dividends Paid | (4,080,685) | (3,422,136) |
Common Dividends Paid, net of Reinvestments | (10,096,749) | (9,107,243) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 45,401,988 | (24,029,305) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 529,855 | (65,026,902) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 10,226,046 | 95,749,508 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 10,755,901 | $ 30,722,606 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Series A Preferred Stock [Member] | ||
Preferred, stock dividend rate | 7.625% |
Organization and Accounting Pol
Organization and Accounting Policies | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Accounting Policies | NOTE 1 – ORGANIZATION AND ACCOUNTING POLICIES Monmouth Real Estate Investment Corporation, a Maryland corporation, together with its consolidated subsidiaries (MREIC, the Company, or we), operates as a real estate investment trust (REIT) deriving its income primarily from real estate rental operations. As of December 31, 2017, the Company owned 108 properties with total square footage of approximately 19,096,000, which was 99.5% occupied, as compared to 108 properties with total square footage of approximately 18,790,000, which was 99.3% occupied as of September 30, 2017. These properties are located in 30 states: Alabama, Arizona, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin. As of the quarter ended December 31, 2017, the Company’s weighted average lease maturity was approximately 7.9 years and its annualized average base rent per occupied square foot was $5.99. As of December 31, 2017, the weighted average building age, based on the square footage of the Company’s buildings, was 9.1 years. The Company also owns a portfolio of REIT investment securities, which the Company generally limits to no more than approximately 10% of its undepreciated assets (which is the Company’s total assets excluding accumulated depreciation). Total gross real estate investments, excluding marketable REIT securities investments of $130,431,475, were $1,484,039,198 as of December 31, 2017. The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code of 1986, as amended (the Code), and intends to maintain its qualification as a REIT in the future. As a qualified REIT, with limited exceptions, the Company will not be taxed under Federal and certain state income tax laws at the corporate level on taxable income that it distributes to its shareholders. For special tax provisions applicable to REITs, refer to Sections 856-860 of the Code. The Company is subject to franchise taxes in several of the states in which the Company owns property. In December 2017, the Tax Cuts and Jobs Act of 2017 (the Act), Code Section 199A, was added to the Code and became effective for tax years beginning after December 31, 2017 and before January 1, 2026. Under the Act, subject to certain income limitations, an individual taxpayer may deduct 20% of the aggregate amount of qualified REIT dividends they receive from their taxable income. Qualified REIT dividends do not include any portion of a dividend received from a REIT that is classified as a capital gain dividend. The interim Consolidated Financial Statements furnished herein have been prepared in accordance with Accounting Principles Generally Accepted in the United States of America (U.S. GAAP) applicable to interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended December 31, 2017 are not necessarily indicative of the results that may be expected for the year ending September 30, 2018. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in the Company’s annual report on Form 10-K for the fiscal year ended September 30, 2017. Use of Estimates In preparing the financial statements in accordance with U.S. GAAP, management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates and assumptions. Reclassification Certain prior period amounts in the accompanying Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. Lease Termination Income Lease Termination Income is recognized in operating revenues when there is a signed termination agreement, all of the conditions of the agreement have been met, the tenant is no longer occupying the property and the termination consideration is probable of collection. Lease termination amounts are paid by tenants who want to terminate their lease obligations before the end of the contractual term of the lease by agreement with the Company. Two leases that were set to expire during fiscal 2018 were leased to Kellogg Sales Company (Kellogg) at the Company’s 65,067 square foot facility located in Kansas City, MO through July 31, 2018 and at the Company’s 50,400 square foot facility located in Orangeburg, NY through February 28, 2018. Kellogg informed the Company that it will not be renewing its leases at these two properties. On December 18, 2017, the Company sold its property, located in Kansas City, MO for $4,900,000, with net sale proceeds to the Company of approximately $4,602,000 and on December 22, 2017, the Company sold its property, located in Orangeburg, NY for $6,170,000, with net sale proceeds to the Company of approximately $5,898,000. The sale of these two properties resulted in a realized gain of approximately $5,388,000, representing a 105% gain over the depreciated U.S. GAAP basis and a realized net gain on a historic cost undepreciated basis of approximately $1,804,000, representing a 21% net gain over the Company’s historic cost basis. In conjunction with the sale of these two properties, the Company simultaneously entered into a lease termination agreement for each property whereby the Company received a termination fee from Kellogg totaling approximately $210,000 which represents a weighted average of 80% of the then remaining rent due under each respective lease. Of the Company’s 108 properties, only five locations have leases that contain an early termination provision. The Company’s leases with early termination provisions are the 26,340 square foot location in Ridgeland (Jackson), MS, the 36,270 square feet location in Urbandale (Des Moines), IA, the 38,833 square foot location in Rockford, IL, the 83,000 square foot location in Roanoke, VA and the 102,135 square foot location in O’Fallon (St. Louis), MO. Each lease termination provision contains certain requirements that must be met in order to exercise each termination provision. These requirements include: date termination can be exercised, the time frame that notice must be given by the tenant to the Company and the termination fee that would be required to be paid by the tenant to the Company. The total potential termination fee to be paid to the Company from the five leases with termination provisions amounts to approximately $1,756,000. Stock Compensation Plan The Company accounts for awards of stock options and restricted stock in accordance with ASC 718-10, “Compensation-Stock Compensation”. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). The compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date less estimated forfeitures. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value of restricted stock awards is equal to the fair value of the Company’s stock on the grant date. The amortization of compensation costs for stock option grants and restricted stock are included in General and Administrative Expenses in the accompanying Consolidated Statements of Income and amounted to $130,763 and $100,155 for the three months ended December 31, 2017 and 2016, respectively. During the three months ended December 31, 2017, no options were granted. During the three months ended December 31, 2016, the following stock options, which vest one year after grant date, were granted under the Company’s Plan: Date of Grant Number of Employees Number of Shares Option Price Expiration Date 12/9/16 10 215,000 $ 14.24 12/9/24 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal year indicated: Fiscal 2017 Dividend yield 4.49 % Expected volatility 18.88 % Risk-free interest rate 2.26 % Expected lives (years) 8 Estimated forfeitures -0- The weighted-average fair value of options granted during the three months ended December 31, 2016 was $1.45 per option. During the three months ended December 31, 2017 and 2016, 12,500 and -0- shares of restricted stock were granted. During the three months ended December 31, 2017, two participants exercised options awarded under the Plan to purchase an aggregate of 20,000 shares of common stock at a weighted average exercise price of $14.24 per share for total proceeds of $284,800. During the three months ended December 31, 2016, no options were exercised. As of December 31, 2017, a total of 1,740,542 shares were available for grant as stock options, as restricted stock, or other equity based awards, plus any shares subject to outstanding options that expire or are forfeited without being exercised, and there were outstanding options to purchase 650,000 shares. The aggregate intrinsic value of options outstanding as of December 31, 2017 was $3,981,900. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “Leases”. ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is continuing to evaluate the potential impact this standard may have on the consolidated financial statements and the timing of adoption. The most significant changes for the Company related to lessor accounting under ASU 2016-02 include bifurcating its revenue into lease and non-lease components and the new standard’s narrow definition of initial direct costs for leases. Since the Company’s revenue is primarily derived from leasing activities from long-term net leases and since the Company currently does not capitalize indirect costs for leases, the Company believes it will continue to account for its leases and related leasing costs in substantially the same manner as it currently does once the adoption of the ASU 2016-02 becomes effective. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for the Company’s fiscal year beginning October 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements and has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures at this time. The Company anticipates that the most significant change for the Company, once ASU 2016-01 is adopted, will be the accounting for the Company’s investments in marketable securities classified as available for sale, which are currently carried at fair value with unrealized holding gains and losses being excluded from earnings and reported as a separate component of Shareholders’ Equity until realized and the change in net unrealized holding gains and losses being reflected as comprehensive income (loss). Under ASU 2016-01, these marketable securities will continue to be measured at fair value, however the changes in net unrealized holding gains and losses will be recognized through net income. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers”. The FASB issued further guidance in ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, that provides clarifying guidance in certain narrow areas and adds some practical expedients. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The effective date of ASU 2014-09 was extended by one year by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The new standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. Therefore, the Company expects to adopt the standard effective October 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method, and the Company is evaluating which transition method it will elect. The Company is also in the process of evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company’s revenue is primarily derived from leasing activities and historically the Company’s property dispositions have been cash sales with no contingencies and no future involvement in the property. Since this standard applies to all contracts with customers except those that are within the scope of other guidance, such as leases, the Company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements and related disclosures. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements. Segment Reporting & Financial Information The Company’s primary business is the ownership and management of real estate properties. The Company invests in well-located, modern, single tenant, industrial buildings leased primarily to investment-grade tenants or their subsidiaries on long-term net leases. The Company reviews operating and financial information for each property on an individual basis and, therefore, each property represents an individual operating segment. The Company evaluates financial performance using Net Operating Income (NOI) from property operations. NOI is a non-GAAP financial measure, which we define as recurring Rental and Reimbursement Revenue, less Real Estate Taxes and Operating Expenses, such as insurance, utilities and repairs and maintenance. The Company has aggregated the properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities, including the fact that they are operated as industrial properties subject to long-term net leases primarily to investment-grade tenants or their subsidiaries. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NOTE 2 – NET INCOME PER SHARE Basic Net Income per Common Share is calculated by dividing Net Income Attributable to Common Shareholders by the weighted-average number of common shares outstanding during the period. Diluted Net Income per Common Share is calculated by dividing Net Income Attributable to Common Shareholders by the weighted-average number of common shares outstanding plus the weighted-average number of net shares that would be issued upon exercise of stock options pursuant to the treasury stock method. In addition, common stock equivalents of 211,382 and 143,640 shares are included in the diluted weighted-average shares outstanding for the three months ended December 31, 2017 and 2016, respectively. For the diluted weighted-average shares outstanding for the three months ended December 31, 2017 and 2016, -0- and 215,000 options to purchase shares of common stock were antidilutive. |
Real Estate Investments
Real Estate Investments | 3 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Investments | NOTE 3 – REAL ESTATE INVESTMENTS On November 2, 2017, the Company purchased a newly constructed 121,683 square foot industrial building, situated on 16.2 acres, located in Charleston, SC. The building is 100% net-leased to FedEx Corporation (FDX) for 15 years through August 2032. The purchase price was $21,872,170. The Company obtained a 15 year fully-amortizing mortgage loan of $14,200,000 at a fixed interest rate of 4.23%. Annual rental revenue over the remaining term of the lease averages approximately $1,312,000. On November 30, 2017, the Company purchased a newly constructed 300,000 square foot industrial building, situated on 123 acres, located in Oklahoma City, OK. The building is 100% net-leased to Amazon.com Services, Inc. for 10 years through October 2027. The purchase price was $30,250,000. The Company obtained a 10 year mortgage loan, amortizing over 18 years, of $19,600,000 at a fixed interest rate of 3.64%. Annual rental revenue over the remaining term of the lease averages approximately $1,884,000. The Company evaluated the property acquisitions which took place during the three months ended December 31, 2017, to determine whether an integrated set of assets and activities meets the definition of a business, pursuant to ASU 2017-01. Acquisitions that do not meet the definition of a business are accounted for as asset acquisitions. Accordingly, the Company accounted for the properties purchased in Charleston, SC and Oklahoma City, OK as asset acquisitions and allocated the total cash consideration, including transaction costs of approximately $378,000, to the individual assets acquired on a relative fair value basis. There were no liabilities assumed in these acquisitions. The financial information set forth below summarizes the Company’s purchase price allocation for these two properties acquired during the three months ended December 31, 2017 that are accounted for as asset acquisitions: Land $ 6,257,523 Building 45,108,625 In-Place Leases 1,134,017 The following table summarizes the operating results included in the Company’s consolidated statements of income for the three months ended December 31, 2017 for the properties acquired during the three months ended December 31, 2017: Three Months Ended 12/31/2017 Rental Revenues $ 373,297 Net Income Attributable to Common Shareholders 182,297 Subsequent to quarter end, on January 22, 2018, the Company purchased a newly constructed 831,764 square foot industrial building, situated on 62.4 acres, located in Savannah, GA. The building is 100% net-leased to Shaw Industries, Inc. for 10 years through September 2027. The purchase price was $57,483,636. The Company obtained a 14 year fully-amortizing mortgage loan of $33,300,000 at a fixed interest rate of 3.53%. Annual rental revenue over the remaining term of the lease averages approximately $3,470,000. FDX, Amazon.com Services, Inc.’s ultimate parent, Amazon.com, Inc. and Shaw Industries, Inc.’s ultimate parent, Berkshire Hathaway, Inc. are publicly-owned companies and financial information related to these entities is available at the SEC’s website, www.sec.gov. The references in this report to the SEC’s website are not intended to and do not include or incorporate by reference into this report the information on those websites. Expansions On November 1, 2017, a parking lot expansion for a property leased to FedEx Ground Package System, Inc., a subsidiary of FDX, located in Indianapolis, IN was completed for a total project cost of approximately $1,683,000, resulting in a new 10 year lease which extended the prior lease expiration date from April 2024 to October 2027. In addition, the expansion resulted in an increase in annual rent effective from the date of completion of approximately $184,000 from approximately $1,533,000, or $4.67 per square foot, to approximately $1,717,000, or $5.24 per square foot. Disposition and Real Estate classified as Held for Sale Two leases that were set to expire during fiscal 2018 were leased to Kellogg at our 65,067 square foot facility located in Kansas City, MO through July 31, 2018 and at our 50,400 square foot facility located in Orangeburg, NY through February 28, 2018. Kellogg informed the Company that they will not be renewing their leases at these two properties. On December 18, 2017, the Company sold its property, located in Kansas City, MO for $4,900,000, with net sale proceeds to the Company of approximately $4,602,000 and on December 22, 2017, the Company sold its property, located in Orangeburg, NY for $6,170,000, with net sale proceeds to the Company of approximately $5,898,000. The sale of these two properties resulted in a realized gain of approximately $5,388,000, representing a 105% gain over the depreciated U.S. GAAP basis and a realized net gain on a historic cost undepreciated basis of approximately $1,804,000, representing a 21% net gain over the Company’s historic cost basis. In conjunction with the sale of these two properties, the Company simultaneously entered into a lease termination agreement for each property whereby the Company received a termination fee from Kellogg totaling approximately $210,000 which represents a weighted average of 80% of the then remaining rent due under each respective lease. Real Estate Held for Sale at December 31, 2017 consists of two properties that the Company has entered into agreements to sell. The two properties consist of an 87,500 square foot facility located in Ft. Myers, FL, which is currently vacant and an 68,370 square foot facility located in Colorado Springs, CO. During the prior year quarter, on October 27, 2016, the Company sold its 59,425 square foot industrial building situated on 4.78 acres located in White Bear Lake, MN for net proceeds of approximately $4,126,000. Since the sale of the properties located in White Bear Lake, MN, Kansas City, MO and Orangeburg, NY and the future sale of the two properties classified as Real Estate Held for Sale do not represent a strategic shift that has a major effect on the Company’s operations and financial results, the operations generated from these properties are not included in Discontinued Operations. The following table summarizes the operations that are included in the accompanying Consolidated Statements of Income for the three months ended December 31, 2017 and 2016 for the two properties that were sold during the current quarter, prior to their sale, one property sold during the prior year quarter, prior to its sale, and for the two properties that are classified as Real Estate Held for Sale in the accompanying Consolidated Balance Sheets. Three Months Ended 12/31/2017 12/31/2016 Rental and Reimbursement Revenue $ 579,762 $ 566,906 Lease Termination Income 210,260 -0- Real Estate Taxes (210,710 ) (94,166 ) Operating Expenses (48,335 ) (64,826 ) Depreciation & Amortization (58,542 ) (136,891 ) Interest Expense, including Amortization of Financing Costs (14,601 ) (52,548 ) Income from Operations 457,834 218,475 Gain (Loss) on Sale of Real Estate Investments 5,387,886 (95,336 ) Net Income $ 5,845,720 $ 123,139 Pro forma information The following unaudited pro forma condensed financial information has been prepared utilizing the historical financial statements of the Company and the effect of additional revenue and expenses generated from property acquired and expanded during fiscal 2018 to date, and during fiscal 2017, assuming that the acquisitions and completed expansions had occurred as of October 1, 2016, after giving effect to certain adjustments including: (a) Rental Revenue adjustments resulting from the straight-lining of scheduled rent increases, (b) Interest Expense resulting from the assumed increase in Fixed Rate Mortgage Notes Payable and Loans Payable related to the new acquisitions, and (c) Depreciation Expense related to the new acquisitions. In addition, the net proceeds raised from the issuance of the 6.125% Series C Cumulative Redeemable Preferred Stock less the redemptions of the Company’s 7.625% Series A Cumulative Redeemable Preferred Stock redeemed on October 14, 2016 and the Company’s 7.875% Series B Cumulative Redeemable Preferred Stock redeemed on June 7, 2017 were used to help fund property acquisitions and, therefore, the pro forma preferred dividend expense has been adjusted to account for its effect on Net Income Attributable to Common Shareholders as if all the preferred stock issuances and redemptions had occurred on October 1, 2016. In addition, Net Income Attributable to Common Shareholders excludes the operations of the properties sold during fiscal 2018 and 2017 which were the vacant property located in White Bear Lake, MN that was sold on October 27, 2016, the property located in Kansas City, MO that was sold on December 18, 2017 and the property located in Orangeburg, NY that was sold on December 22, 2017 and excludes the two properties classified as Real Estate Held for Sale. Furthermore, the proceeds raised from the Dividend Reinvestment and Stock Purchase Plan (the DRIP) were used to fund property acquisitions and expansions and therefore, the weighted average shares outstanding used in calculating the Basic and Diluted Net Income per Share Attributable to Common Shareholders has been adjusted to account for the increase in shares raised through the DRIP, as if all the shares raised had occurred on October 1, 2016. The unaudited pro forma condensed financial information is not indicative of the results of operations that would have been achieved had the acquisitions and expansions reflected herein been consummated on the dates indicated or that will be achieved in the future. Three Months Ended 12/31/2017 12/31/2016 Rental Revenue $ 28,645,000 $ 28,727,300 Net Income Attributable to Common Shareholders $ 7,665,700 $ 6,841,000 Basic and Diluted Net Income per Share Attributable to Common Shareholders $ 0.10 $ 0.09 Tenant Concentration The Company has a concentration of FDX and FDX subsidiary-leased properties, consisting of 59 separate stand-alone leases covering approximately 9,513,000 square feet as of December 31, 2017 and 55 separate stand-alone leases covering approximately 8,187,000 square feet as of December 31, 2016. The 59 separate stand-alone leases that are leased to FDX and FDX subsidiaries have a weighted average lease maturity of 8.7 years. The percentage of FDX and its subsidiaries leased square footage to the total of the Company’s rental space was 50% (8% to FDX and 42% to FDX subsidiaries) as of December 31, 2017 and 49% (6% to FDX and 43% to FDX subsidiaries) as of December 31, 2016. As of December 31, 2017, the only tenants that leased 5% or more of the Company’s total square footage were FDX and its subsidiaries and Milwaukee Electric Tool Corporation, which leases one property through July 2028 consisting of approximately 862,000 square feet, which was approximately 5% of the Company’s rental space. As of December 31, 2017, no other tenants, other than FDX and its subsidiaries and Milwaukee Electric Tool Corporation, accounted for 5% or more of the Company’s total rental space. Annualized Rental and Reimbursement Revenue from FDX and its subsidiaries is estimated to be approximately 60% (7% to FDX and 53% to FDX subsidiaries) of total Rental and Reimbursement Revenue for fiscal 2018 and was 59% (6% to FDX and 53% to FDX subsidiaries) of total Rental and Reimbursement Revenue for fiscal 2017. No other tenant, other than FDX and its subsidiaries, accounted for 5% or more of the Company’s total Rental and Reimbursement Revenue for the three months ended December 31, 2017 and 2016. FDX is a publicly-owned company and financial information related to this entity is available at the SEC’s website, www.sec.gov. In addition to real estate property holdings, the Company held $130,431,475 in marketable REIT securities at December 31, 2017, representing 7.8% of the Company’s undepreciated assets (which is the Company’s total assets excluding accumulated depreciation). These liquid real estate holdings are not included in calculating the tenant concentration ratios above and therefore further enhance the Company’s diversification. The securities portfolio provides the Company with additional liquidity, diversification and income and serves as a proxy for real estate when more favorable risk adjusted returns are not available. |
Securities Available for Sale a
Securities Available for Sale at Fair Value | 3 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale at Fair Value | NOTE 4 – SECURITIES AVAILABLE FOR SALE AT FAIR VALUE The Company’s Securities Available for Sale at Fair Value consists primarily of marketable common and preferred stock of other REITs with a fair value of $130,431,475 as of December 31, 2017. The Company generally limits its investment in marketable securities to no more than approximately 10% of its undepreciated assets (which is the Company’s total assets excluding accumulated depreciation). The REIT securities portfolio provides the Company with additional liquidity, diversification and income and serves as a proxy for real estate when more favorable risk adjusted returns are not available. During the three months ended December 31, 2017, the Company sold or redeemed securities with a cost basis of $2,335,015 and recognized a Gain on Sale of Securities Transactions of $100,153. In addition, the Company recognized dividend income on its investment in securities of $2,862,644 for the three months ended December 31, 2017. The Company also made purchases of $19,714,857 in Securities Available for Sale at Fair Value. Of this amount, the Company made total purchases of 14,252 common shares of UMH Properties, Inc. (UMH), a related REIT, for a total cost of $203,097, or a cost of $14.25 per share, which were purchased through UMH’s Dividend Reinvestment and Stock Purchase Plan. The Company owned a total of 1,142,568 UMH common shares as of December 31, 2017 at a total cost of $11,434,947 and a fair value of $17,024,261. The Company owns 100,000 shares of UMH’s 8.00% Series B Cumulative Redeemable Preferred Stock at a total cost of $2,500,000 with a fair value of $2,731,550. The unrealized gain on the Company’s investment in UMH’s common and preferred stock as of December 31, 2017 was $5,820,864. As of December 31, 2017, the Company had total net unrealized holding losses on its securities portfolio of $4,142,572. The Company considers many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment. The Company normally holds REIT securities long-term and has the ability and intent to hold these securities to recovery. The following is a summary of the securities that the Company has determined to be temporarily impaired as of December 31, 2017: Less than 12 Months 12 Months or Longer Unrealized Unrealized Description of Securities Fair Value Losses Fair Value Losses Preferred stock $ 4,372,000 $ (435,781 ) $ -0- $ -0- Common stock 43,891,500 (13,494,567 ) -0- -0- Total $ 48,263,500 $ (13,930,348 ) $ -0- $ -0- The following is a summary of the range of losses: Number of Individual Securities Fair Value Unrealized Losses Range of Loss 2 $ 21,899,500 $ (1,823,408 ) 1%-10 % 1 7,120,000 (1,278,551 ) 15 % 1 19,244,000 (10,828,389 ) 36 % 4 $ 48,263,500 $ (13,930,348 ) |
Debt
Debt | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 5 – DEBT For the three months ended December 31, 2017 and 2016, amortization of financing costs included in interest expense was $293,894 and $280,913, respectively. The following is a summary of our Fixed Rate Mortgage Notes Payable as of December 31, 2017 and September 30, 2017: 12/31/2017 9/30/2017 Amount Weighted Average Interest Rate (1) Amount Weighted Average Interest Rate (1) Fixed Rate Mortgage Notes Payable $ 620,411,537 4.16 % $ 598,962,567 4.18 % Debt Issuance Costs $ 10,878,623 $ 10,597,083 Accumulated Amortization of Debt Issuance Costs (3,118,521 ) (2,998,887 ) Unamortized Debt Issuance Costs $ 7,760,102 $ 7,598,196 Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs $ 612,651,435 $ 591,364,371 (1) Weighted average interest rate excludes amortization of debt issuance costs. As of December 31, 2017, interest payable on these mortgages were at fixed rates ranging from 3.45% to 7.60%, with a weighted average interest rate of 4.16%. This compares to a weighted average interest rate of 4.18% as of September 30, 2017 and 4.44% as of December 31, 2016. As of December 31, 2017, the weighted average loan maturity of the Fixed Rate Mortgage Notes Payable was 11.5 years. This compares to a weighted average loan maturity of the Fixed Rate Mortgage Notes Payable of 11.6 years as of September 30, 2017 and 10.7 years as of December 31, 2016. In connection with the two properties acquired during the three months ended December 31, 2017, which are located in Charleston, SC and Oklahoma City, OK (as described in Note 3), the Company obtained one 15 year, fully-amortizing mortgage loan and one, 10 year loan, amortizing over 18 years. The two mortgage loans originally totaled $33,800,000 with an original weighted average mortgage loan maturity of 12.1 years and a weighted average interest rate of 3.89%. During the three months ended December 31, 2017, the Company fully repaid one mortgage loan for its property located in Richfield, OH, totaling approximately $2,633,000. As of December 31, 2017, Loans Payable represented the amount drawn down on the Company’s $200,000,000 unsecured line of credit facility (the Facility) in the amount of $110,000,000. The Facility matures in September 2020 with a one year extension at the Company’s option (subject to various conditions as specified in the loan agreement). During the three months ended December 31, 2017, the Company had no additional draws under the Facility. Availability under the Facility is limited to 60% of the value of the borrowing base properties. The value of the borrowing base properties is determined by applying a 7.0% capitalization rate to the NOI generated by the Company’s unencumbered, wholly-owned industrial properties. Borrowings under the Facility, will, at the Company’s election, either i) bear interest at LIBOR plus 140 basis points to 220 basis points, depending on the Company’s leverage ratio, or ii) bear interest at BMO’s prime lending rate plus 40 basis points to 120 basis points, depending on the Company’s leverage ratio. The Company’s borrowings as of December 31, 2017, based on the Company’s leverage ratio as of December 31, 2017, bear interest at LIBOR plus 170 basis points, which was at an interest rate of 3.06% as of December 31, 2017. In addition, the Company has a $100,000,000 accordion feature, bringing the total potential availability under the Facility (subject to various conditions as specified in the loan agreement) up to $300,000,000. The Company also invests in equity securities of other REITs which provides the Company with additional liquidity, diversification and income and serves as a proxy for real estate when more favorable risk adjusted returns are not available. The Company from time to time may purchase these securities on margin, at an interest rate of 2.0%, when the interest and dividend yields exceed the cost of funds. In general, the Company may borrow up to 50% of the value of the marketable securities, which was $130,431,475 as of December 31, 2017. As of December 31, 2017, there were no draws against the margin. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | NOTE 6 – SHAREHOLDERS’ EQUITY The Company’s authorized stock as of December 31, 2017 consisted of 192,039,750 shares of common stock, of which 77,209,110 shares were issued and outstanding, 12,400,000 authorized shares of 6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 par value per share (6.125% Series C Preferred Stock), of which 10,879,379 were issued and outstanding, and 200,000,000 authorized shares of Excess Stock, $0.01 par value per share, of which none were issued or outstanding. Common Stock On October 2, 2017, the Company’s Board of Directors approved a 6.25% increase in the Company’s quarterly common stock dividend, raising it to $0.17 per share from $0.16 per share, representing the Company’s second dividend increase in three years. The increased dividend represents an annualized dividend rate of $0.68 per share. The Company has maintained or increased its cash dividend for 26 consecutive years. The Company raised $25,531,430 (including dividend reinvestments of $2,919,972) from the issuance of 1,546,089 shares of common stock under its DRIP during the three months ended December 31, 2017. During the three months ended December 31, 2017, the Company paid $13,016,721 in total cash dividends, or $0.17 per share, to common shareholders, of which $2,919,972 was reinvested in the DRIP. On January 16, 2018, the Company declared a dividend of $0.17 per share to be paid March 15, 2018 to common shareholders of record as of the close of business on February 15, 2018. On January 16, 2018, the Board of Directors reaffirmed its Share Repurchase Program that authorizes the Company to purchase up to $10,000,000 in the aggregate of the Company’s common stock. The Company may repurchase its shares from time to time if, in the opinion of the Board of Directors, such acquisition is advantageous to the Company. No shares were repurchased during the three months ended December 31, 2017 and, as of December 31, 2017, the Company does not own any of its own shares. 6.125% Series C Cumulative Redeemable Preferred Stock During the three months ended December 31, 2017, the Company paid $4,080,685 in Preferred Dividends, or $0.3828125 per share, on its outstanding 6.125% Series C Preferred Stock for the period September 1, 2017 through November 30, 2017. As of December 31, 2017, the Company has accrued Preferred Dividends of $1,388,254 covering the period December 1, 2017 to December 31, 2017. Dividends on the 6.125% Series C Preferred Stock are cumulative and payable quarterly at an annual rate of $1.53125 per share. The 6.125% Series C Preferred Stock has no maturity date and will remain outstanding indefinitely unless redeemed or otherwise repurchased. Except in limited circumstances relating to the Company’s qualification as a REIT, or in connection with a change of control, the 6.125% Series C Preferred Stock is not redeemable prior to September 15, 2021. On and after September 15, 2021, at any time, and from time to time, the 6.125% Series C Preferred Stock will be redeemable in whole, or in part, at the Company’s option, at a cash redemption price of $25.00 per share, plus all accrued and unpaid dividends (whether or not declared) to, but not including, the date of redemption. On January 16, 2018, the Company declared a dividend of $0.3828125 per share to be paid March 15, 2018 to the 6.125% Series C Preferred shareholders of record as of the close of business on February 15, 2018. On June 29, 2017, the Company entered into an At-The-Market Preferred Equity Program (Preferred Stock ATM Program) with FBR Capital Markets & Co. in which the Company may, from time to time, offer and sell additional shares of its 6.125% Series C Preferred Stock, with a liquidation preference of $25.00 per share, having an aggregate sales price of up to $100,000,000. The Company began selling shares through the Preferred Stock ATM Program on July 3, 2017. During the three months ended December 31, 2017, the Company sold 1,039,934 shares under its Preferred Stock ATM Program at a weighted average price of $25.13 per share, and generated net proceeds, after offering expenses, of approximately $25,688,000. As of December 31, 2017, 10,879,379 shares of the 6.125% Series C Preferred Stock were issued and outstanding. Subsequent to the quarter end, through January 24, 2018, the Company sold 145,997 shares under its Preferred Stock ATM Program at a weighted average price of $25.04 per share, and realized net proceeds, after offering expenses, of approximately $3,595,000. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 7 - FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, including Securities Available for Sale at Fair Value. The Company’s financial assets consist mainly of marketable REIT securities. The fair value of these financial assets was determined using the following inputs at December 31, 2017 and September 30, 2017: Fair Value Measurements at Reporting Date Using Total Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of December 31, 2017: Equity Securities – Preferred Stock $ 8,818,945 $ 8,818,945 $ -0- $ -0- Equity Securities – Common Stock 121,608,411 121,608,411 -0- -0- Mortgage Backed Securities 4,119 4,119 -0- -0- Total Securities Available for Sale at Fair Value $ 130,431,475 $ 130,431,475 $ -0- $ -0- As of September 30, 2017: Equity Securities – Preferred Stock $ 11,818,628 $ 11,818,628 $ -0- $ -0- Equity Securities – Common Stock 111,941,806 111,941,806 -0- -0- Mortgage Backed Securities 4,336 4,336 -0- -0- Total Securities Available for Sale at Fair Value $ 123,764,770 $ 123,764,770 $ -0- $ -0- In addition to the Company’s investments in Securities Available for Sale at Fair Value, the Company is required to disclose certain information about fair values of its other financial instruments. Estimates of fair value are made at a specific point in time based upon, where available, relevant market prices and information about the financial instrument. Such estimates do not include any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a financial instrument. For a portion of the Company’s other financial instruments, no quoted market value exists. Therefore, estimates of fair value are necessarily based on a number of significant assumptions (many of which involve events outside the control of management). Such assumptions include assessments of current economic conditions, perceived risks associated with these financial instruments and their counterparties; future expected loss experience and other factors. Given the uncertainties surrounding these assumptions, the reported fair values represent estimates only, and therefore cannot be compared to the historical accounting model. The use of different assumptions or methodologies is likely to result in significantly different fair value estimates. The fair value of Cash and Cash Equivalents approximates their current carrying amounts since all such items are short term in nature. The fair value of variable rate Loans Payable approximates their current carrying amounts, since such amounts payable are at approximately a weighted-average current market rate of interest. The estimated fair value of Fixed Rate Mortgage Notes Payable is based on discounting the future cash flows at a yearend risk adjusted borrowing rate currently available to the Company for issuance of debt with similar terms and remaining maturities. These fair value measurements fall within level 2 of the fair value hierarchy. At December 31, 2017, the Fixed Rate Mortgage Notes Payable fair value (estimated based upon expected cash outflows discounted at current market rates) amounted to approximately $624,966,000 and the carrying value amounted to $620,411,537. Those fair value measurements are estimated based on independent third party appraisals and fall within level 3 of the fair value hierarchy. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | NOTE 8 - SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest during the three months ended December 31, 2017 and 2016 was approximately $7,198,000 and $5,882,000, respectively. During the three months ended December 31, 2017 and 2016, the Company had dividend reinvestments of $2,919,972 and $2,077,156, respectively, which required no cash transfers. |
Contingencies and Commitments
Contingencies and Commitments | 3 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | NOTE 9 – CONTINGENCIES AND COMMITMENTS From time to time, the Company may be subject to claims and litigation in the ordinary course of business. Management does not believe that any such claim or litigation will have a material adverse effect on the Consolidated Balance Sheets or results of operations. In addition to the property purchased subsequent to the quarter end, as described in Note 10, the Company has entered into agreements to purchase two new build-to-suit, industrial buildings that are currently being developed in Florida and South Carolina, consisting of approximately 660,000 square feet, with net-leased terms of 10 and 15 years with a weighted average lease term of 12 years. The purchase price for these properties is approximately $78,018,000. Approximately 261,000 square feet, or 40%, is leased to FedEx Ground Package System, Inc. Subject to satisfactory due diligence and other customary closing conditions and requirements, we anticipate closing these transactions during fiscal 2018 and the first quarter of fiscal 2019. In connection with the two properties, the Company has entered into commitments to obtain two mortgage loans totaling $49,360,000 at fixed rates of 3.82% and 4.25%, with a weighted average interest rate of 3.99%. Both of these mortgage loans are 15 year, fully-amortizing loans. The Company is under contract to sell two properties consisting of (i) an 87,500 square foot vacant building located in Ft. Myers, FL, for $6,400,000, which is approximately $2,400,000 above the Company’s U.S. GAAP net book carrying value and is anticipated to close during the second quarter of fiscal 2018 (ii) a 68,370 square foot building located in Colorado Springs, CO for $5,800,000, which is approximately the Company’s U.S. GAAP net book carrying value and is anticipated to close during the third quarter of fiscal 2018. The completion of these two sales are subject to customary closing conditions and requirements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10 – SUBSEQUENT EVENTS Material subsequent events have been evaluated and are disclosed herein. On January 16, 2018, the Company declared a common dividend of $0.17 per share to be paid March 15, 2018 to common shareholders of record as of the close of business on February 15, 2018. On January 16, 2018, the Company declared a preferred dividend of $0.3828125 per share to be paid March 15, 2018 to Series C preferred shareholders of record as of the close of business on February 15, 2018. On January 22, 2018, the Company purchased a newly constructed 831,764 square foot industrial building, situated on 62.4 acres, located in Savannah, GA. The building is 100% net-leased to Shaw Industries, Inc. and is guaranteed by Shaw Industries Group, Inc., a wholly owned subsidiary of Berkshire Hathaway, Inc. for 10 years through September 2027. The purchase price was $57,483,636. The Company obtained a 14 year fully-amortizing mortgage loan of $33,300,000 at a fixed interest rate of 3.53%. Annual rental revenue over the remaining term of the lease averages approximately $3,470,000. Subsequent to the quarter end, through January 24, 2018, the Company sold 145,997 shares under its Preferred Stock ATM Program at a weighted average price of $25.04 per share, and realized net proceeds, after offering expenses, of approximately $3,595,000. |
Organization and Accounting P18
Organization and Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates In preparing the financial statements in accordance with U.S. GAAP, management is required to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates and assumptions. |
Reclassification | Reclassification Certain prior period amounts in the accompanying Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. |
Lease Termination Income | Lease Termination Income Lease Termination Income is recognized in operating revenues when there is a signed termination agreement, all of the conditions of the agreement have been met, the tenant is no longer occupying the property and the termination consideration is probable of collection. Lease termination amounts are paid by tenants who want to terminate their lease obligations before the end of the contractual term of the lease by agreement with the Company. Two leases that were set to expire during fiscal 2018 were leased to Kellogg Sales Company (Kellogg) at the Company’s 65,067 square foot facility located in Kansas City, MO through July 31, 2018 and at the Company’s 50,400 square foot facility located in Orangeburg, NY through February 28, 2018. Kellogg informed the Company that it will not be renewing its leases at these two properties. On December 18, 2017, the Company sold its property, located in Kansas City, MO for $4,900,000, with net sale proceeds to the Company of approximately $4,602,000 and on December 22, 2017, the Company sold its property, located in Orangeburg, NY for $6,170,000, with net sale proceeds to the Company of approximately $5,898,000. The sale of these two properties resulted in a realized gain of approximately $5,388,000, representing a 105% gain over the depreciated U.S. GAAP basis and a realized net gain on a historic cost undepreciated basis of approximately $1,804,000, representing a 21% net gain over the Company’s historic cost basis. In conjunction with the sale of these two properties, the Company simultaneously entered into a lease termination agreement for each property whereby the Company received a termination fee from Kellogg totaling approximately $210,000 which represents a weighted average of 80% of the then remaining rent due under each respective lease. Of the Company’s 108 properties, only five locations have leases that contain an early termination provision. The Company’s leases with early termination provisions are the 26,340 square foot location in Ridgeland (Jackson), MS, the 36,270 square feet location in Urbandale (Des Moines), IA, the 38,833 square foot location in Rockford, IL, the 83,000 square foot location in Roanoke, VA and the 102,135 square foot location in O’Fallon (St. Louis), MO. Each lease termination provision contains certain requirements that must be met in order to exercise each termination provision. These requirements include: date termination can be exercised, the time frame that notice must be given by the tenant to the Company and the termination fee that would be required to be paid by the tenant to the Company. The total potential termination fee to be paid to the Company from the five leases with termination provisions amounts to approximately $1,756,000. |
Stock Compensation Plan | Stock Compensation Plan The Company accounts for awards of stock options and restricted stock in accordance with ASC 718-10, “Compensation-Stock Compensation”. ASC 718-10 requires that compensation cost for all stock awards be calculated and amortized over the service period (generally equal to the vesting period). The compensation cost for stock option grants is determined using option pricing models, intended to estimate the fair value of the awards at the grant date less estimated forfeitures. The compensation expense for restricted stock is recognized based on the fair value of the restricted stock awards less estimated forfeitures. The fair value of restricted stock awards is equal to the fair value of the Company’s stock on the grant date. The amortization of compensation costs for stock option grants and restricted stock are included in General and Administrative Expenses in the accompanying Consolidated Statements of Income and amounted to $130,763 and $100,155 for the three months ended December 31, 2017 and 2016, respectively. During the three months ended December 31, 2017, no options were granted. During the three months ended December 31, 2016, the following stock options, which vest one year after grant date, were granted under the Company’s Plan: Date of Grant Number of Employees Number of Shares Option Price Expiration Date 12/9/16 10 215,000 $ 14.24 12/9/24 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal year indicated: Fiscal 2017 Dividend yield 4.49 % Expected volatility 18.88 % Risk-free interest rate 2.26 % Expected lives (years) 8 Estimated forfeitures -0- The weighted-average fair value of options granted during the three months ended December 31, 2016 was $1.45 per option. During the three months ended December 31, 2017 and 2016, 12,500 and -0- shares of restricted stock were granted. During the three months ended December 31, 2017, two participants exercised options awarded under the Plan to purchase an aggregate of 20,000 shares of common stock at a weighted average exercise price of $14.24 per share for total proceeds of $284,800. During the three months ended December 31, 2016, no options were exercised. As of December 31, 2017, a total of 1,740,542 shares were available for grant as stock options, as restricted stock, or other equity based awards, plus any shares subject to outstanding options that expire or are forfeited without being exercised, and there were outstanding options to purchase 650,000 shares. The aggregate intrinsic value of options outstanding as of December 31, 2017 was $3,981,900. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, “Leases”. ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. ASU 2016-02 will be effective for annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is continuing to evaluate the potential impact this standard may have on the consolidated financial statements and the timing of adoption. The most significant changes for the Company related to lessor accounting under ASU 2016-02 include bifurcating its revenue into lease and non-lease components and the new standard’s narrow definition of initial direct costs for leases. Since the Company’s revenue is primarily derived from leasing activities from long-term net leases and since the Company currently does not capitalize indirect costs for leases, the Company believes it will continue to account for its leases and related leasing costs in substantially the same manner as it currently does once the adoption of the ASU 2016-02 becomes effective. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. These changes become effective for the Company’s fiscal year beginning October 1, 2018. The Company is currently in the process of evaluating the impact of the adoption on its consolidated financial statements and has not determined the effects of this update on the Company’s financial position, results of operations or cash flows and disclosures at this time. The Company anticipates that the most significant change for the Company, once ASU 2016-01 is adopted, will be the accounting for the Company’s investments in marketable securities classified as available for sale, which are currently carried at fair value with unrealized holding gains and losses being excluded from earnings and reported as a separate component of Shareholders’ Equity until realized and the change in net unrealized holding gains and losses being reflected as comprehensive income (loss). Under ASU 2016-01, these marketable securities will continue to be measured at fair value, however the changes in net unrealized holding gains and losses will be recognized through net income. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers”. The FASB issued further guidance in ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients”, that provides clarifying guidance in certain narrow areas and adds some practical expedients. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The effective date of ASU 2014-09 was extended by one year by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date”. The new standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. Therefore, the Company expects to adopt the standard effective October 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method, and the Company is evaluating which transition method it will elect. The Company is also in the process of evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company’s revenue is primarily derived from leasing activities and historically the Company’s property dispositions have been cash sales with no contingencies and no future involvement in the property. Since this standard applies to all contracts with customers except those that are within the scope of other guidance, such as leases, the Company does not expect the adoption of this standard to have a significant impact on its consolidated financial statements and related disclosures. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying Consolidated Financial Statements. |
Segment Reporting & Financial Information | Segment Reporting & Financial Information The Company’s primary business is the ownership and management of real estate properties. The Company invests in well-located, modern, single tenant, industrial buildings leased primarily to investment-grade tenants or their subsidiaries on long-term net leases. The Company reviews operating and financial information for each property on an individual basis and, therefore, each property represents an individual operating segment. The Company evaluates financial performance using Net Operating Income (NOI) from property operations. NOI is a non-GAAP financial measure, which we define as recurring Rental and Reimbursement Revenue, less Real Estate Taxes and Operating Expenses, such as insurance, utilities and repairs and maintenance. The Company has aggregated the properties into one reportable segment as the properties share similar long-term economic characteristics and have other similarities, including the fact that they are operated as industrial properties subject to long-term net leases primarily to investment-grade tenants or their subsidiaries. |
Organization and Accounting P19
Organization and Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Stock Options Outstanding | During the three months ended December 31, 2017, no options were granted. During the three months ended December 31, 2016, the following stock options, which vest one year after grant date, were granted under the Company’s Plan: Date of Grant Number of Employees Number of Shares Option Price Expiration Date 12/9/16 10 215,000 $ 14.24 12/9/24 |
Schedule of Stock Options, Valuation Assumptions | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal year indicated: Fiscal 2017 Dividend yield 4.49 % Expected volatility 18.88 % Risk-free interest rate 2.26 % Expected lives (years) 8 Estimated forfeitures -0- |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Properties Acquired During Period Accounted for Asset Acquisitions | The financial information set forth below summarizes the Company’s purchase price allocation for these two properties acquired during the three months ended December 31, 2017 that are accounted for as asset acquisitions: Land $ 6,257,523 Building 45,108,625 In-Place Leases 1,134,017 |
Summary of Consolidated Statements of Income for Properties Acquired | The following table summarizes the operating results included in the Company’s consolidated statements of income for the three months ended December 31, 2017 for the properties acquired during the three months ended December 31, 2017: Three Months Ended 12/31/2017 Rental Revenues $ 373,297 Net Income Attributable to Common Shareholders 182,297 |
Summary of Income or Operation Statements | The following table summarizes the operations that are included in the accompanying Consolidated Statements of Income for the three months ended December 31, 2017 and 2016 for the two properties that were sold during the current quarter, prior to their sale, one property sold during the prior year quarter, prior to its sale, and for the two properties that are classified as Real Estate Held for Sale in the accompanying Consolidated Balance Sheets. Three Months Ended 12/31/2017 12/31/2016 Rental and Reimbursement Revenue $ 579,762 $ 566,906 Lease Termination Income 210,260 -0- Real Estate Taxes (210,710 ) (94,166 ) Operating Expenses (48,335 ) (64,826 ) Depreciation & Amortization (58,542 ) (136,891 ) Interest Expense, including Amortization of Financing Costs (14,601 ) (52,548 ) Income from Operations 457,834 218,475 Gain (Loss) on Sale of Real Estate Investments 5,387,886 (95,336 ) Net Income $ 5,845,720 $ 123,139 |
Schedule of Pro Forma Information | Three Months Ended 12/31/2017 12/31/2016 Rental Revenue $ 28,645,000 $ 28,727,300 Net Income Attributable to Common Shareholders $ 7,665,700 $ 6,841,000 Basic and Diluted Net Income per Share Attributable to Common Shareholders $ 0.10 $ 0.09 |
Securities Available for Sale21
Securities Available for Sale at Fair Value (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Temporary Impaired Securities | The following is a summary of the securities that the Company has determined to be temporarily impaired as of December 31, 2017: Less than 12 Months 12 Months or Longer Unrealized Unrealized Description of Securities Fair Value Losses Fair Value Losses Preferred stock $ 4,372,000 $ (435,781 ) $ -0- $ -0- Common stock 43,891,500 (13,494,567 ) -0- -0- Total $ 48,263,500 $ (13,930,348 ) $ -0- $ -0- |
Summary of Range of Losses | The following is a summary of the range of losses: Number of Individual Securities Fair Value Unrealized Losses Range of Loss 2 $ 21,899,500 $ (1,823,408 ) 1%-10 % 1 7,120,000 (1,278,551 ) 15 % 1 19,244,000 (10,828,389 ) 36 % 4 $ 48,263,500 $ (13,930,348 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Fixed Rate Mortgage Notes Payable | The following is a summary of our Fixed Rate Mortgage Notes Payable as of December 31, 2017 and September 30, 2017: 12/31/2017 9/30/2017 Amount Weighted Average Interest Rate (1) Amount Weighted Average Interest Rate (1) Fixed Rate Mortgage Notes Payable $ 620,411,537 4.16 % $ 598,962,567 4.18 % Debt Issuance Costs $ 10,878,623 $ 10,597,083 Accumulated Amortization of Debt Issuance Costs (3,118,521 ) (2,998,887 ) Unamortized Debt Issuance Costs $ 7,760,102 $ 7,598,196 Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs $ 612,651,435 $ 591,364,371 (1) Weighted average interest rate excludes amortization of debt issuance costs. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Assets | The fair value of these financial assets was determined using the following inputs at December 31, 2017 and September 30, 2017: Fair Value Measurements at Reporting Date Using Total Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) As of December 31, 2017: Equity Securities – Preferred Stock $ 8,818,945 $ 8,818,945 $ -0- $ -0- Equity Securities – Common Stock 121,608,411 121,608,411 -0- -0- Mortgage Backed Securities 4,119 4,119 -0- -0- Total Securities Available for Sale at Fair Value $ 130,431,475 $ 130,431,475 $ -0- $ -0- As of September 30, 2017: Equity Securities – Preferred Stock $ 11,818,628 $ 11,818,628 $ -0- $ -0- Equity Securities – Common Stock 111,941,806 111,941,806 -0- -0- Mortgage Backed Securities 4,336 4,336 -0- -0- Total Securities Available for Sale at Fair Value $ 123,764,770 $ 123,764,770 $ -0- $ -0- |
Organization and Accounting P24
Organization and Accounting Policies (Details Narrative) | Dec. 22, 2017USD ($) | Dec. 18, 2017USD ($) | Dec. 31, 2017USD ($)aft²$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2017aft² |
Number of real estate properties owned | ft² | 108 | 108 | |||
Total square foot of property | a | 19,096,000 | 18,790,000 | |||
Percentage of properties occupied | 99.50% | 99.30% | |||
Weighted average building age | 7 years 10 months 25 days | ||||
Annualized average base rent per square foot | $ / shares | $ 5.99 | ||||
REIT investment securities, description | The Company also owns a portfolio of REIT investment securities, which the Company generally limits to no more than approximately 10% of its undepreciated assets (which is the Companys total assets excluding accumulated depreciation). | ||||
Total gross real estate investments | $ 1,484,039,198 | ||||
Marketable REIT securities investments | 130,431,475 | ||||
Gain on real estate properties | $ 5,388,000 | ||||
Percentage of gain on properties | 105.00% | ||||
Net gain on historic cost | $ 1,804,000 | ||||
Percentage of net gain over the historic cost basis | 21.00% | ||||
Lease termination income | $ 210,261 | $ 0 | |||
Stock based compensation expense | $ 130,763 | $ 100,155 | |||
Weighted average fair value of stock option | $ / shares | $ 1.45 | ||||
Number Restricted stock shares granted | shares | 12,500 | 0 | |||
Options to purchase shares of common stock | shares | 20,000 | ||||
Weighted average exercise price per share | $ / shares | $ 14.24 | ||||
Total proceeds | $ 284,800 | $ 0 | |||
Stock option shares available for grant | shares | 1,740,542 | ||||
Option to purchase shares outstanding | shares | 650,000 | ||||
Aggregate intrinsic value of options | $ 3,981,900 | ||||
Five Lease [Member] | |||||
Lease termination income | $ 1,756,000 | ||||
Kansas City, MO (Kellogg) [Member] | |||||
Total square foot of property | a | 65,067 | ||||
Value of property sold | $ 4,900,000 | ||||
Proceeds from sale of property | $ 4,602,000 | ||||
Orangeburg NY [Member] | |||||
Total square foot of property | a | 50,400 | ||||
Value of property sold | $ 6,170,000 | ||||
Proceeds from sale of property | $ 5,898,000 | ||||
Kansas City, MO and Orangeburg, NY [Member] | |||||
Lease termination income | $ 210,000 | ||||
Percentage of weighted average lease termination income | 80.00% | ||||
Ridgeland (Jackson), MS [Member] | |||||
Total square foot of property | a | 26,340 | ||||
Urbandale (Des Moines), IA [Member] | |||||
Total square foot of property | a | 36,270 | ||||
Rockford, IL (Sherwin-Williams Co.) [Member] | |||||
Total square foot of property | a | 38,833 | ||||
Roanoke, VA (FDX Ground) [Member] | |||||
Total square foot of property | a | 83,000 | ||||
O'Fallon (St. Louis) MO [Member] | |||||
Total square foot of property | a | 102,135 | ||||
Buildings [Member] | |||||
Weighted average building age | 9 years 1 month 6 days |
Organization and Accounting P25
Organization and Accounting Policies - Summary of Stock Options Outstanding (Details) - Stock Options [Member] | 3 Months Ended |
Dec. 31, 2016Employee$ / sharesshares | |
Date of Grant | Dec. 9, 2016 |
Number of Employees | Employee | 10 |
Number of Shares | shares | 215,000 |
Option Price | $ / shares | $ 14.24 |
Expiration Date | Dec. 9, 2024 |
Organization and Accounting P26
Organization and Accounting Policies - Schedule of Stock Options, Valuation Assumptions (Details) | 3 Months Ended |
Dec. 31, 2016shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Dividend yield | 4.49% |
Expected volatility | 18.88% |
Risk-free interest rate | 2.26% |
Expected lives (years) | 8 years |
Estimated forfeitures | 0 |
Net Income Per Share (Details N
Net Income Per Share (Details Narrative) - shares | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Common stock equivalents included in the diluted weighted average shares outstanding | 211,382 | 143,640 |
Antidilutive securities | 0 | 215,000 |
Real Estate Investments (Detail
Real Estate Investments (Details Narrative) | Dec. 22, 2017USD ($) | Dec. 18, 2017USD ($) | Nov. 30, 2017USD ($)ft²a | Nov. 02, 2017USD ($)ft²a$ / shares | Oct. 27, 2016USD ($)ft²a | Dec. 31, 2017USD ($)ft²a | Dec. 31, 2016USD ($)ft² | Sep. 30, 2017a |
Transaction costs | $ 378,000 | |||||||
Total square foot of property | a | 19,096,000 | 18,790,000 | ||||||
Gain on real estate properties | $ 5,388,000 | |||||||
Percentage of gain on properties | 105.00% | |||||||
Net gain on historic cost | $ 1,804,000 | |||||||
Percentage of net gain over the historic cost basis | 21.00% | |||||||
Potential lease termination income | $ 210,261 | $ 0 | ||||||
Weighted average lease maturity | 7 years 10 months 25 days | |||||||
Held marketable securities | $ 130,431,475 | |||||||
Percentage of un depreciated assets | 7.80% | |||||||
Series C Cumulative Redeemable Preferred Stock [Member] | ||||||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | |||||||
Series A Cumulative Redeemable Preferred Stock [Member] | ||||||||
Cumulative redeemable preferred, stock dividend rate | 7.625% | |||||||
Series B Cumulative Redeemable Preferred Stock [Member] | ||||||||
Cumulative redeemable preferred, stock dividend rate | 7.875% | |||||||
FedEx Corporation [Member] | ||||||||
Percentage of real estate property leased | 8.00% | 6.00% | ||||||
FedEx Corporation [Member] | Rental And Reimbursement Revenue [Member] | Fiscal Year 2018 [Member] | ||||||||
Percentage of aggregate rental and reimbursement revenue | 7.00% | |||||||
FedEx Corporation [Member] | Rental And Reimbursement Revenue [Member] | Fiscal Year 2017 [Member] | ||||||||
Percentage of aggregate rental and reimbursement revenue | 6.00% | |||||||
Kansas City, MO (Kellogg) [Member] | ||||||||
Total square foot of property | a | 65,067 | |||||||
Value of property sold | $ 4,900,000 | |||||||
Proceeds from sale of property | $ 4,602,000 | |||||||
Fedex Ground Package System Inc. [Member] | ||||||||
Lease term | 10 years | |||||||
Cost of building expansion | $ 1,683,000 | |||||||
Lease expiration date description | extended the prior lease expiration date from April 2024 to October 2027 | |||||||
Increase in rent | $ 184,000 | |||||||
Rent prior to expansion | $ 1,533,000 | |||||||
Rent prior to expansion, per square foot | $ / shares | $ 4.67 | |||||||
Rent increase to after expansion | $ 1,717,000 | |||||||
Rent increase to after expansion, per square foot | $ / shares | $ 5.24 | |||||||
Orangeburg NY [Member] | ||||||||
Total square foot of property | a | 50,400 | |||||||
Value of property sold | $ 6,170,000 | |||||||
Proceeds from sale of property | $ 5,898,000 | |||||||
Ft. Myers [Member] | ||||||||
Total square foot of property | ft² | 87,500 | |||||||
Colorado Springs, CO [Member] | ||||||||
Total square foot of property | ft² | 68,370 | |||||||
Fedex And Fedex Subsidiaries [Member] | ||||||||
Square feet of real estate property leased | ft² | 9,513,000 | 8,187,000 | ||||||
Weighted average lease maturity | 8 years 8 months 12 days | |||||||
Percentage of real estate property leased | 50.00% | 49.00% | ||||||
Percentage of rental space and tenant account, description | only tenants that leased 5% or more of the Companys total square footage | |||||||
Fedex And Fedex Subsidiaries [Member] | Rental And Reimbursement Revenue [Member] | ||||||||
Percentage of rental space and tenant account, description | No other tenant, other than FDX and its subsidiaries, accounted for 5% or more of the Companys total Rental and Reimbursement Revenue | |||||||
Fedex And Fedex Subsidiaries [Member] | Rental And Reimbursement Revenue [Member] | Fiscal Year 2018 [Member] | ||||||||
Percentage of aggregate rental and reimbursement revenue | 60.00% | |||||||
Fedex And Fedex Subsidiaries [Member] | Rental And Reimbursement Revenue [Member] | Fiscal Year 2017 [Member] | ||||||||
Percentage of aggregate rental and reimbursement revenue | 59.00% | |||||||
Fedex Corporation Subsidiaries Member [Member] | ||||||||
Percentage of real estate property leased | 42.00% | 43.00% | ||||||
Fedex Corporation Subsidiaries Member [Member] | Rental And Reimbursement Revenue [Member] | Fiscal Year 2018 [Member] | ||||||||
Percentage of aggregate rental and reimbursement revenue | 53.00% | |||||||
Fedex Corporation Subsidiaries Member [Member] | Rental And Reimbursement Revenue [Member] | Fiscal Year 2017 [Member] | ||||||||
Percentage of aggregate rental and reimbursement revenue | 53.00% | |||||||
FDX And Subsidiaries And Milwaukee Electric Tool Corporation [Member] | ||||||||
Total square foot of property | ft² | 862,000 | |||||||
Percentage of rental space and tenant account, description | accounted for 5% or more of the Companys total rental space | |||||||
Industrial Buildings [Member] | FedEx Corporation [Member] | ||||||||
Purchase of industrial building | ft² | 121,683 | |||||||
Area of property | a | 16.2 | |||||||
Percentage of building area leased | 100.00% | |||||||
Lease term | 15 years | |||||||
Lease term expiration period | Aug. 31, 2032 | |||||||
Purchase price of industrial building | $ 21,872,170 | |||||||
Mortgage loan amortization period | 15 years | |||||||
Face amount of mortgages | $ 14,200,000 | |||||||
Mortgage loans on real estate, interest rate | 4.23% | |||||||
Annual rental income over the remaining term of lease | $ 1,312,000 | |||||||
Industrial Buildings [Member] | Amazon.com Services, Inc [Member] | ||||||||
Purchase of industrial building | ft² | 300,000 | |||||||
Area of property | a | 123 | |||||||
Percentage of building area leased | 100.00% | |||||||
Lease term | 10 years | |||||||
Lease term expiration period | Oct. 31, 2027 | |||||||
Purchase price of industrial building | $ 30,250,000 | |||||||
Mortgage loan amortization period | 18 years | |||||||
Face amount of mortgages | $ 19,600,000 | |||||||
Mortgage loans on real estate, interest rate | 3.64% | |||||||
Annual rental income over the remaining term of lease | $ 1,884,000 | |||||||
Mortgage loan period | 10 years | |||||||
Industrial Buildings [Member] | Shaw Industries, Inc [Member] | January 22, 2018 [Member] | ||||||||
Purchase of industrial building | ft² | 831,764 | |||||||
Area of property | a | 62.4 | |||||||
Percentage of building area leased | 100.00% | |||||||
Lease term | 10 years | |||||||
Lease term expiration period | Sep. 30, 2027 | |||||||
Purchase price of industrial building | $ 57,483,636 | |||||||
Mortgage loan amortization period | 14 years | |||||||
Face amount of mortgages | $ 33,300,000 | |||||||
Mortgage loans on real estate, interest rate | 3.53% | |||||||
Annual rental income over the remaining term of lease | $ 3,470,000 | |||||||
Industrial Buildings [Member] | White Bear Lake, MN [Member] | ||||||||
Area of property | a | 4.78 | |||||||
Proceeds from sale of property | $ 4,126,000 | |||||||
Sale of industrial building | ft² | 59,425 |
Real Estate Investments - Sched
Real Estate Investments - Schedule of Properties Acquired During Period Accounted for Asset Acquisitions (Details) | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Land [Member] | |
Purchase price allocation of properties acquired | $ 6,257,523 |
Buildings [Member] | |
Purchase price allocation of properties acquired | 45,108,625 |
In-Place Leases [Member] | |
Purchase price allocation of properties acquired | $ 1,134,017 |
Real Estate Investments - Summa
Real Estate Investments - Summary of Consolidated Statements of Income for Properties Acquired (Details) | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Real Estate [Abstract] | |
Rental Revenue | $ 373,297 |
Net Income Attributable to Common Shareholders | $ 182,297 |
Real Estate Investments - Sum31
Real Estate Investments - Summary of Income or Operation Statements (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Lease Termination Income | $ 210,261 | $ 0 |
Real Estate Held for Sale [Member] | ||
Rental and Reimbursement Revenue | 579,762 | 566,906 |
Lease Termination Income | 210,260 | 0 |
Real Estate Taxes | (210,710) | (94,166) |
Operating Expenses | (48,335) | (64,826) |
Depreciation & Amortization | (58,542) | (136,891) |
Interest Expense, including Amortization of Financing Costs | (14,601) | (52,548) |
Income from Operations | 457,834 | 218,475 |
Loss on Sale of Real Estate Investment | 5,387,886 | (95,336) |
Net Loss | $ 5,845,720 | $ 123,139 |
Real Estate Investments - Sch32
Real Estate Investments - Schedule of Pro Forma Information (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Real Estate [Abstract] | ||
Rental Revenue | $ 28,645,000 | $ 28,727,300 |
Net Income Attributable to Common Shareholders | $ 7,665,700 | $ 6,841,000 |
Basic and Diluted Net Income per Share Attributable to Common Shareholders | $ 0.10 | $ 0.09 |
Securities Available for Sale33
Securities Available for Sale at Fair Value (Details Narrative) - USD ($) | 3 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale at fair value | $ 130,431,475 | $ 123,764,770 | |
Security available for sale, maximum percentage of investment on un depreciated assets | 10.00% | ||
Proceeds from sales or redemptions of securities available for sale | $ 2,335,015 | ||
Gain on sale of securities available for sale | 100,153 | $ 806,108 | |
Dividend income on investment in securities | 2,862,644 | ||
Purchase of securities available for sale | 19,714,857 | $ 6,396,581 | |
Net unrealized gains on securities portfolio | 4,142,572 | $ (6,570,565) | |
UMH Properties, Inc [Member] | Series B Cumulative Redeemable Preferred Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale at fair value | 2,731,550 | ||
Shares owned, cost | $ 2,500,000 | ||
Available for sale securities, shares | 100,000 | ||
Dividend rate of preferred stock held as security for loan | 8.00% | ||
UMH Properties, Inc [Member] | Common and Preferred Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Net unrealized gains on securities portfolio | $ (5,820,864) | ||
UMH Properties, Inc [Member] | Common Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Securities available for sale at fair value | $ 17,024,261 | ||
UMH common shares purchased during the quarter | 14,252 | ||
Cost of securities purchased | $ 203,097 | ||
Dividend reinvestment and stock purchase plan cost, per share | $ 14.25 | ||
Shares owned by company | 1,142,568 | ||
Shares owned, cost | $ 11,434,947 |
Securities Available for Sale34
Securities Available for Sale at Fair Value - Schedule of Temporary Impaired Securities (Details) | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Less than 12 Months, Fair Value | $ 48,263,500 |
Less than 12 Months, Unrealized Losses | (13,930,348) |
12 Months or Longer, Fair Value | 0 |
12 Months or Longer, Unrealized Losses | 0 |
Preferred Stock [Member] | |
Less than 12 Months, Fair Value | 4,372,000 |
Less than 12 Months, Unrealized Losses | (435,781) |
12 Months or Longer, Fair Value | 0 |
12 Months or Longer, Unrealized Losses | 0 |
Common Stock [Member] | |
Less than 12 Months, Fair Value | 43,891,500 |
Less than 12 Months, Unrealized Losses | (13,494,567) |
12 Months or Longer, Fair Value | 0 |
12 Months or Longer, Unrealized Losses | $ 0 |
Securities Available for Sale35
Securities Available for Sale at Fair Value - Summary of Range of Losses (Details) | 3 Months Ended |
Dec. 31, 2017USD ($)Security | |
Number of Individual Securities | Security | 4 |
Fair Value | $ 48,263,500 |
Unrealized Losses | $ (13,930,348) |
Securities One [Member] | |
Number of Individual Securities | Security | 2 |
Fair Value | $ 21,899,500 |
Unrealized Losses | $ (1,823,408) |
Range of Loss | 1%-10% |
Securities Two [Member] | |
Number of Individual Securities | Security | 1 |
Fair Value | $ 7,120,000 |
Unrealized Losses | $ (1,278,551) |
Range of Loss | 15% |
Securities Three [Member] | |
Number of Individual Securities | Security | 1 |
Fair Value | $ 19,244,000 |
Unrealized Losses | $ (10,828,389) |
Range of Loss | 36% |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Interest expense | $ 293,894 | $ 280,913 | |
Weighted average interest rate percentage | 4.16% | 4.44% | 4.18% |
Notes payable maturity period | 11 years 6 months | 10 years 8 months 12 days | 11 years 7 months 6 days |
Proceeds from fixed rate mortgage notes payable | $ 33,800,000 | $ 38,000,000 | |
Repayment of mortgage payable | $ 2,633,000 | ||
Margin loan bearing interest rate | 2.00% | ||
Maximum borrowing percentage of marketable securities | 50.00% | ||
Securities available for sale at fair value | $ 130,431,475 | $ 123,764,770 | |
Line of Credit [Member] | |||
Total availability of unsecured credit facility | 200,000,000 | ||
Line of credit amount | $ 110,000,000 | ||
Debt maturity date | Sep. 30, 2020 | ||
Line of credit facility interest rate terms | Availability under the Facility is limited to 60% of the value of the borrowing base properties. The value of the borrowing base properties is determined by applying a 7.0% capitalization rate to the NOI generated by the Companys unencumbered, wholly-owned industrial properties. Borrowings under the Facility, will, at the Companys election, either i) bear interest at LIBOR plus 140 basis points to 220 basis points, depending on the Companys leverage ratio, or ii) bear interest at BMOs prime lending rate plus 40 basis points to 120 basis points, depending on the Companys leverage ratio. The Companys borrowings as of December 31, 2017, based on the Company's leverage ratio as of December 31, 2017, bear interest at LIBOR plus 170 basis points, which was at an interest rate of 3.06% as of December 31, 2017. | ||
Line of credit facility related to accordion feature | $ 100,000,000 | ||
Total potential available under unsecured line of credit | $ 300,000,000 | ||
One Mortgages Loans [Member] | |||
Mortgage loan amortization period | 15 years | ||
Mortgages Loans [Member] | |||
Mortgage loan amortization period | 10 years | ||
Mortgage loan amortizing over period | 18 years | ||
Two Mortgages Loans [Member] | |||
Weighted average interest rate percentage | 3.89% | ||
Notes payable maturity period | 12 years 1 month 6 days | ||
Proceeds from fixed rate mortgage notes payable | $ 33,800,000 | ||
Minimum [Member] | |||
Annual interest rate | 3.45% | ||
Maximum [Member] | |||
Annual interest rate | 7.60% |
Debt - Schedule of Fixed Rate M
Debt - Schedule of Fixed Rate Mortgage Notes Payable (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |||
Fixed Rate Mortgage Notes Payable | $ 620,411,537 | $ 598,962,567 | |
Debt Issuance Costs | 10,878,623 | 10,597,083 | |
Accumulated Amortization of Debt Issuance Costs | (3,118,521) | (2,998,887) | |
Unamortized Debt Issuance Costs | 7,760,102 | 7,598,196 | |
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | $ 612,651,435 | $ 591,364,371 | |
Weighted Average Interest Rate | [1] | 4.16% | 4.18% |
[1] | Weighted average interest rate excludes amortization of debt issuance costs. |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) | Oct. 02, 2017 | Jun. 29, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 |
Subsidiary or Equity Method Investee [Line Items] | |||||
Common stock, shares authorized | 192,039,750 | 192,039,750 | |||
Common stock, shares issued | 77,209,110 | 75,630,521 | |||
Common stock, shares outstanding | 77,209,110 | 75,630,521 | |||
Excess stock, shares authorized | 200,000,000 | 200,000,000 | |||
Excess Stock, par value | $ 0.01 | $ 0.01 | |||
Excess Stock , shares issued | |||||
Excess Stock , shares outstanding | |||||
Amount of dividend reinvested | $ 2,919,972 | $ 2,077,156 | |||
Dividend Reinvestment and Stock Purchase Plan [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Common stock issued under plan | 1,546,089 | ||||
Preferred Stock ATM Program [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | ||||
Maximum proceeds from issuance of sale of equity | $ 100,000,000 | ||||
Number of preferred stock shares sold | 1,039,934 | ||||
Weighted average exercise price per share | $ 25.13 | ||||
Net proceeds from offering | $ 25,688,000 | ||||
Preferred Stock ATM Program [Member] | January 24, 2018 [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Number of preferred stock shares sold | 145,997 | ||||
Weighted average exercise price per share | $ 25.04 | ||||
Net proceeds from offering | $ 3,595,000 | ||||
Maximum [Member] | January 16, 2018 [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Share Repurchase Program authorizes amount | $ 10,000,000 | ||||
Common Stock [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Percentage increase in common stock dividend | 6.25% | ||||
Dividend declared per share | $ 0.17 | ||||
Common stock dividend, description | Board of Directors approved a 6.25% increase in the Companys quarterly common stock dividend, raising it to $0.17 per share from $0.16 per share, representing the Companys second dividend increase in three years. | ||||
Increase in dividend period | 3 years | ||||
Annualized dividend rate per share price | $ 0.68 | ||||
Period of maintained or increased its cash dividend | 26 years | ||||
Cash raised from issuance of common stock under DRIP | $ 25,531,430 | ||||
Amount of dividend reinvested | 2,919,972 | ||||
Cash dividends paid | $ 13,016,721 | ||||
Dividend declaration date | Jan. 16, 2018 | ||||
Dividends payable, date to be paid | Mar. 15, 2018 | ||||
Dividend payable date of record | Feb. 15, 2018 | ||||
Common Stock [Member] | Minimum [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Dividend declared per share | $ 0.16 | ||||
Common Stock [Member] | Maximum [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Dividend declared per share | $ 0.17 | ||||
Series C Preferred Stock [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Preferred stock, shares authorized | 12,400,000 | 12,400,000 | |||
Cumulative redeemable preferred, stock dividend rate | 6.125% | 6.125% | |||
Preferred stock, par value | $ 0.01 | $ 0.01 | |||
Preferred stock, shares issued | 10,879,379 | 9,839,445 | |||
Preferred stock, shares outstanding | 10,879,379 | 9,839,445 | |||
Series C Cumulative Redeemable Preferred Stock [Member] | |||||
Subsidiary or Equity Method Investee [Line Items] | |||||
Cumulative redeemable preferred, stock dividend rate | 6.125% | ||||
Preferred stock, shares issued | 10,879,379 | ||||
Preferred stock, shares outstanding | 10,879,379 | ||||
Dividend declared per share | $ 0.3828125 | ||||
Cash dividends paid | $ 4,080,685 | ||||
Dividend declaration date | Jan. 16, 2018 | ||||
Dividends payable, date to be paid | Mar. 15, 2018 | ||||
Dividend payable date of record | Feb. 15, 2018 | ||||
Accrued dividend | $ 1,388,254 | ||||
Annual rate of dividends cumulative and payable | $ 1.53125 | ||||
Preferred stock redemption price | $ 25 |
Fair Value Measurements (Detail
Fair Value Measurements (Details Narrative) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Fixed rate mortgage notes payable, net of unamortized debt issuance costs | $ 612,651,435 | $ 591,364,371 |
Mortgage Notes Payable Fair Value [Member] | ||
Fixed rate mortgage notes payable at fair value | 624,966,000 | |
Fixed rate mortgage notes payable, net of unamortized debt issuance costs | $ 620,411,537 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Financial Assets (Details) - USD ($) | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | $ 130,431,475 | $ 123,764,770 |
Fair Value Measurements [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 130,431,475 | 123,764,770 |
Fair Value Measurements [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 8,818,945 | 11,818,628 |
Fair Value Measurements [Member] | Preferred Stock [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 8,818,945 | 11,818,628 |
Fair Value Measurements [Member] | Preferred Stock [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Preferred Stock [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 121,608,411 | 111,941,806 |
Fair Value Measurements [Member] | Common Stock [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 121,608,411 | 111,941,806 |
Fair Value Measurements [Member] | Common Stock [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Common Stock [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 4,119 | 4,336 |
Fair Value Measurements [Member] | Mortgage Backed Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 4,119 | 4,336 |
Fair Value Measurements [Member] | Mortgage Backed Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | 0 | 0 |
Fair Value Measurements [Member] | Mortgage Backed Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities Available for Sale at Fair Value | $ 0 | $ 0 |
Supplemental Cash Flow Inform41
Supplemental Cash Flow Information (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 7,198,000 | $ 5,882,000 |
Amount of dividend reinvested | $ 2,919,972 | $ 2,077,156 |
Contingencies and Commitments (
Contingencies and Commitments (Details Narrative) | 3 Months Ended |
Dec. 31, 2017USD ($)ft²aProperties | |
Contingencies and Commitments [Line Items] | |
Gain loss on sale of properties | $ 5,388,000 |
Industrial Building [Member] | |
Contingencies and Commitments [Line Items] | |
Number of real estate properties committed to purchase | Properties | 2 |
Number of real estate properties committed to mortgage | Properties | 2 |
Mortgage loans committed on real estate, carrying amount of mortgage | $ 49,360,000 |
Mortgages, minimum interest rate | 3.82% |
Mortgages, maximum interest rate | 4.25% |
Mortgage loans weighted average interest rate | 3.99% |
Mortgage loans amortization period | 15 years |
Properties One [Member] | |
Contingencies and Commitments [Line Items] | |
Area of buildings | ft² | 87,500 |
Proceeds from sale of buildings | $ 6,400,000 |
Gain loss on sale of properties | $ 2,400,000 |
Properties Two [Member] | |
Contingencies and Commitments [Line Items] | |
Area of buildings | ft² | 68,370 |
Proceeds from sale of buildings | $ 5,800,000 |
Property Purchase Agreement [Member] | Industrial Building [Member] | |
Contingencies and Commitments [Line Items] | |
Area of buildings | ft² | 660,000 |
Weighted average lease maturity term | 12 years |
Aggregate purchase price of industrial properties | $ 78,018,000 |
Property Purchase Agreement [Member] | Industrial Building [Member] | Investment Grade Tenants Or Subsidiaries [Member] | |
Contingencies and Commitments [Line Items] | |
Area leased to FDX | a | 261,000 |
Percentage of building area leased | 40.00% |
Property Purchase Agreement [Member] | Industrial Building [Member] | Minimum [Member] | |
Contingencies and Commitments [Line Items] | |
Weighted average lease maturity term | 10 years |
Property Purchase Agreement [Member] | Industrial Building [Member] | Maximum [Member] | |
Contingencies and Commitments [Line Items] | |
Weighted average lease maturity term | 15 years |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jan. 24, 2018USD ($)$ / sharesshares | Jan. 22, 2018USD ($)ft²a | Jan. 16, 2018$ / shares | Dec. 31, 2017$ / sharesshares |
Preferred Stock ATM Program [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold | shares | 1,039,934 | |||
Weighted average price per share | $ / shares | $ 25.13 | |||
Subsequent Event [Member] | Preferred Stock ATM Program [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of shares sold | shares | 145,997 | |||
Weighted average price per share | $ / shares | $ 25.04 | |||
Net proceeds from offering | $ | $ 3,595,000 | |||
Subsequent Event [Member] | Industrial Building [Member] | Shaw Industries, Inc [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase of industrial building | ft² | 831,764 | |||
Area of property | a | 62.4 | |||
Percentage of building area leased | 100.00% | |||
Lease term | 10 years | |||
Lease term expiration period | Sep. 30, 2027 | |||
Purchase price of industrial building | $ | $ 57,483,636 | |||
Mortgage loan amortization period | 14 years | |||
Face amount of mortgages | $ | $ 33,300,000 | |||
Mortgage loans on real estate, interest rate | 3.53% | |||
Annual rental income over the remaining term of lease | $ | $ 3,470,000 | |||
Subsequent Event [Member] | Common Shareholders [Member ] | ||||
Subsequent Event [Line Items] | ||||
Dividend declared per share | $ / shares | $ 0.17 | |||
Dividend declaration date | Jan. 16, 2018 | |||
Dividends payable, date to be paid | Mar. 15, 2018 | |||
Dividend payable date of record | Feb. 15, 2018 | |||
Subsequent Event [Member] | Series C Preferred Shareholders [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividend declared per share | $ / shares | $ 0.3828125 | |||
Dividend declaration date | Jan. 16, 2018 | |||
Dividends payable, date to be paid | Mar. 15, 2018 | |||
Dividend payable date of record | Feb. 15, 2018 |